Just Three things investors must know 

investments

What investors must know when they are ready to invest?

Investors purchase an asset or item that they believe and hope that it will generate income for them.

From an economic view, investments are not for consumed today but are used in the future. Investors hope that their investments will generate wealth in the future.

To invest, is a complex business, even for experienced and educated investors.

The investment Industry is highly regulated from Financial Regulators around the world aim to set the rules and protect public and investors from fraud and scams.

To be successful in the investment industry, investors must take into consideration many parameters that may affect their investments such the inflation, political changes, the interest rates, the fast changing technology, the market price.

Below are three things, serious, long term investors should understand:

1) The time period of the investment.

What is the time horizon that an investor is able to keep his/her money in an investment?

Based the answer, an investor will have a clear plan on what asset to invest. For example, if the answer is for decades then a choice can be investment in real estate or real estate fund.

2) How can react in up and down of the market invested in.

Think also about volatility. Every industry has its up and down. The fact is how an investor react to this volatility. The investor must study and understand the market to invest in so to be ready to react if the market goes up or fall down. And how to react in small fluctuations.
For example a 1% change in stock market is normal in day to day trading. But always must have available the necessary resources and be ready to react on changes.

3) How much to invest.

How much an investor invest really matters even more than movements of the market alone. Have in mind the Return On Investment, Volatility and the Investment Time. There are investments where the return is fixed for years. The fact here is how much money to invest over the years. How much an investor is contributing to this particular investment over the years.

People interested to enter the market of investments for a full time living, experienced investors or even people who just want to secure their future with a low risk investment must always take into consideration the things that they can CONTROL.
For how long they are ready to keep their money on an investment, how they can react to market volatility and how much are ready to invest based the future outcome they expect to have.

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